Types of Term Life Insurance
Term life insurance is one of the best ways to protect your
family or business because you can buy large amounts of coverage
at very low rates. When most people think of term life insurance
they think of level term but there are several other types
of term insurance available. Other term life options include,
annual renewable term (ART), decreasing term, return of premium
(ROP) term, and lifetime guaranteed term insurance. Following
is a brief description of each kind of term policy.
Level
Term Life Insurance
Level term life insurance, by far the most popular type of
term policy, provides a guaranteed coverage amount at a fixed
price for a specific time period. Level term life is available
in guaranteed periods of 5, 10, 15, 20, 25 and 30 years. Rates
are based on your age, gender, lifestyle and health as well
as the length of the guaranteed term period. The longer the
level term period the more you will have to pay for the policy.
For more information see, what is level term life insurance?
Instant Level Term Life Insurance Quote
Annual Renewable Term Life Insurance
(ART)
 Annual renewable term is life insurance that covers you for
a one year period at a guaranteed rate. After the first year,
the policy can be continued but premiums will increase annually.
In many cases, annual renewable term policies offer the cheapest
rates over the first few policy years. However, as you get
older, premiums begin to increase dramatically and may become
significantly more expensive than other level term options.
For more information see, what is annual renewable term life
insurance?
Instant
Annual Renewable Term Life Quote
Decreasing
Term Life Insurance
Decreasing term life insurance provides coverage at a fixed
price but the insurance amount decreases over life of the policy.
In the past, decreasing term has been popular for protecting
mortgage loans because the decreasing benefit could mirror
a reducing mortgage balance. In theory, you would pay a lower
rate over the life of the policy because of coverage decreases.
However, since low cost level term has become so competitive,
decreasing term insurance has lost its appeal. In fact, in
many cases level term policies are cheaper than decreasing
term policies.
Return
of Premium Term Life Insurance (ROP Term)
Return of premium term life insurance, commonly referred to
as ROP term or “money back” term, offers guaranteed
level premiums with the ability to build cash value and a feature
that returns 100% of all premiums at the end of the level period.
ROP term provides the best of both worlds: low guaranteed premiums
and the ability to get a complete refund of those premiums
when the level term expires. Mortgage protection is a situation
where return of premium term insurance fits perfectly. For
additional ROP term details see, what is return of premium
term life insurance?
Instant
Return of Premium Term Life Insurance Quote
Lifetime
Guaranteed Term Insurance
Lifetime guaranteed term insurance offers a fixed “term-like” premium
with an insurance benefit that is fixed for your entire life.
Lifetime guaranteed term, also referred to as “term insurance
to age 100”, differs from level term insurance in that
premiums are guaranteed not to increase. Because the coverage
is guaranteed, the cost for lifetime coverage can be considerably
more expensive. However, when compare to whole life, lifetime
guaranteed term is significantly cheaper. To learn more see,
what is lifetime guaranteed term insurance?
Instant
Lifetime Guaranteed Term Insurance Quote
Summary
When most people shop for term life insurance, they look for
level term insurance. However, there are several other types
of term life insurance including annual renewable term, ROP
term, term insurance to age 100 and decreasing term. The type
of policy that makes the most sense for you will depend on
what you are trying to accomplish. At MEG Financial, we offer
each of the term policies above as well as other competitive
life insurance options. Contact MEG Financial today at toll
free (877) 583-3955, and our independent professionals will
provide customs quotes given your objectives.
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